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Thursday's Market Minute: Will Housing Defend Its Title?

TD Ameritrade Network

Homes are being bought, but are they being built? At 10:00am ET, New Home Sales will fill in the housing market picture outlined by Existing Home Sales on Tuesday. In an industry that has shown strength in recent months, September’s sales of already-constructed houses came in below estimates, falling 2.2% from August. However, on the year, sales increased nearly 4%.

Today’s report will support one of two opposing narratives: the one given by the recent rally in homebuilders and strong summer data that says the housing market is a sign of strength in an otherwise weakening economy – or that the rebound is fragile, contingent on lower interest rates. One sign of the latter is Caterpillar Inc’s (NYSE: CAT) 7% y/y decline in construction revenue, adding to concerns about homebuilder profitability. For new home sales, the market expects to see 698k, below last month’s rate, which was near the highest in 12 years.

Also on the docket today are a slew of earnings. Before market open, airline stocks American Air Lines (NASDAQ: AAL) and Southwest (NYSE: LUV) report alongside Twitter (NYSE: TWTR), Comcast (NASDAQ: CMCSA), and Raytheon (NYSE: RTN); and aftermarket are reports from Amazon.com, Inc.(NASDAQ: AMZN), Intel Corporation (NASDAQ: INTC), and Verizon Communications, Inc. (NYSE: VZ).

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